Economic News

Despite their slow integration as a medium of exchange, one major bank fears cryptocurrencies as a serious threat to the banking system

In their annual SEC filings, Bank of America made it quite clear that they believe cryptocurrencies pose a serious threat to their business, as well as the banking system as a whole.

In fact earlier this month BofA, along with JP Morgan Chase and Citigroup, banned the use of credit cards in the purchase of cryptocurrencies, leading many to speculate that this action was tied directly towards competitive fears rather than as process to protect customers from potential frauds or scams.

Graphic use courtesy of Cointelegraph

Bank of America considers cryptocurrency a material risk to its business, public records reveal. The bank has made efforts to restrict its customers’ use of bitcoin and other virtual currencies. 

In its annual filing with the Securities and Exchange Commission, the bank admitted cryptocurrency poses a competitive threat to its business on three separate occasions within the document. The bank said there is a risk that its customers could turn to cryptocurrencies adding that, “Clients may choose to conduct business with other market participants who engage in business or offer products in areas we deem speculative or risky, such as cryptocurrencies.” 

Bank of America, Citigroup and JPMorgan Chase have banned purchases of cryptocurrency on their credit cards, starting February. Bank of America has also placed restrictions on its Merrill Lynch brokerage clients when it comes to bitcoin-related investments, the Financial Times reports. – Russia Today

Source: thedailyeconomist.com